Insurance and Pension Denmark (I&P Denmark) has set out five proposals to strengthen legal certainty in tax matters for businesses and citizens.

The association said that, as pension and insurance companies serve virtually all Danes, lengthy and unclear tax cases can have consequences for millions of pension savers and policyholders.

The five proposals consist of more predictable and transparent legislation through early and effective involvement; early clarification and certainty of future effect; a binding framework for timely case processing; clear criteria, concrete liability assessments and proportionality in tax criminal cases; and the need for a comprehensive law on the repayment of taxes and duties unduly levied.

I&P Denmark deputy director, Tom Vile Jensen, said: “Legal certainty is about more than just being proved right in the end. People must also be able to understand the rules, follow the authorities’ guidance and have their case resolved within a reasonable time. This is crucial for confidence in the tax system.”

Jensen believed clear, predictable rules were crucial to safeguard confidence in Denmark’s tax system.

“Citizens and businesses should not have to spend years trying to work out what the rules actually mean. A society governed by the rule of law requires that the authorities are predictable and make decisions within a reasonable time,” Jensen added.

The proposals stem, among other things, from the industry's experience with the so-called ATP case complex, which is not expected to be concluded until the end of 2026, even though the decisive ruling from the European Court of Justice of the European Union was handed down back in 2014.

Jensen said it’s hard to explain to ordinary Danes that a tax case can take more than 12 years to resolve.

“When clarifications take so long, it creates uncertainty for businesses, and ultimately, for pension savers too, with some citizens passing away before the cases have been settled and the money refunded,” he continued.

“These proposals intend to help prevent such situations in future, and we would like to do so in close collaboration with legislators and the tax authorities.”

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